SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
In the matter of )
)
)
EUA ENERGY INVESTMENT CORPORATION ) Certificate of
Lowell, Massachusetts ) Notification
) Pursuant to
) Rule 24
(70-8837) )
)
(Public Utility Holding Company Act of 1935) )
Enclosed herewith for filing by EUA Energy Investment Corporation, a
wholly-owned subsidiary of Eastern Utilities Associates in
accordance with the Order of the Securities and Exchange Commission
entered in the above matter on June 26, 1996 (Release No. 35-26529)
and pursuant to Rule 24, are the balance sheet, the income statement,
and statement of cash flows for the period ended September 30, 1999 of
Separation Technologies, Inc., reflecting the investments to date therein by
EUA Energy Investment Corporation.
EUA Energy Investment Corporation
By: /s/ Clifford J. Hebert, Jr.
Clifford J. Hebert, Jr.
Treasurer
Dated: November 30, 1999
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
THIRD QUARTER 1999
(1)(a) The Company has nearly completed the permitting process necessary to
commence construction of the Jacksonville, Florida facility. The
Company anticipates construction starting after the first of the year.
Approval for the use of fly ash in concrete used by the State of
Florida is anticipated by mid 2000 by the Florida Department of
Transportation.
(b) The Company is currently pursuing approximately $5.0 million in equity
financing to finance, among other thing, the construction of the
Jacksonville facility. It expects to complete this financing by year
end. In addition, as part of this financing transaction, the Company
will receive the remaining 50% ownership interest in its Pro Ash
Partnership.
(c) The Company estimates that the second separator to be installed at
Baltimore Gas & Electric Brandon Shores, Maryland operating facility
will start construction during 2001.
(2) Separation Technologies' Financial Statements through September 30,
1999.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
September 30, 1999
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $6,287
Less: Accumulated depreciation 2,086
Total fixed Assets 4,201
Current Assets:
Cash and cash equivalents 446
Accounts Receivable, net 622
Inventories 40
Prepaid Expenses and Other 56
Total Current Assets 1,164
Other Assets:
Restricted Cash 882
Investment in ProAsh 375
Acquired Intangibles 75
Patents and acquired Technology 453
Total Other Assets 1,785
TOTAL ASSETS $7,150
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Additional Paid-in-Capital 14,035
Deficit accumulated during development (14,620)
Total Stockholders' Equity (532)
Long Term Liabilities:
Notes Payable to EUA Energy 2,158
Total Long Term Liabilities 2,158
Total Capitalization 2,158
Current Liabilities:
Accounts Payable 522
Notes Payable-current portion 4,538
Interest payable 0
Accrued Expenses and Deferred Revenue 464
Total Current Liabilities 5,524
TOTAL LIABILITIES AND EQUITY $7,150
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Three Months and Year to Date Period Ended September 30, 1999
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $958 $2,547
Cost of Revenues 380 935
Gross Profit 578 1,612
Operating Expenses:
Engineering, Research and Development 409 730
Sales and Marketing Expenses 210 527
General and Administrative Expenses 394 1,334
Total Operating Expenses 1,013 2,591
Operating Income (Loss) (435) (979)
Interest Charges and Other Expenses 117 347
Pre-tax Net Income (Loss) ($552) ($1,326)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended September 30, 1999
(Unaudited) (In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($1,326)
Depreciation & Amortization 490
Other 52
Change in Current Assets and Liabilities:
Accounts Receivable (230)
Accounts Payable (494)
Other Current Assets and Liabilities (201)
Net Operating Activities (1,709)
Investing Activities:
Capital Expenditures (2,031)
Investment in ProAsh (26)
Net Investing Activities (2,057)
Financing Activities:
Increase in Notes and Leases 3,821
Net Financing Activities 3,821
Net increase in cash and cash equivalents 55
Cash and cash equivalents at December 31, 1998 391
Cash and cash equivalents at September 30, 1999 446
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